Gordon Brown is to scrap the operating and financial review (OFR) in a bid to cut down on red tape.

The chancellor is set to tell the CBI conference today that the government is to abandon the document in a surprise move. The OFR, although opposed by the Conservatives during the election campaign, had been thought likely to shine a light onto aspects of companies hitherto undisclosed, including fuller explanations of oil reserves, for example.

Nigel Sleigh-Johnson, head of financial reporting at the ICAEW, said: 'I hadn't detected a huge amount of opposition from business.'

Critics had suggested that the OFR would have added nothing to outline descriptions of busineses that already appear in results presentations and annual reports.

Sir Digby Jones, CBI director-general, welcomed the move: 'I've been crying out for the government to stop telling us about plans to cut red tape and to get on with it.'

Brown is also set to announce changes to the way in which companies report to Companies House and the Revenue, unifying the process.

Many companies will also be exempted from completing Form 42, which relates to equity remuneration of employees, he is set to reveal.